Exploitation of 1999 super transitional provisions - TA 2009/8

The Taxpayer Alert describes an arrangement that involves the transfer of benefits associated with the 1999 "transitional provisions" for self-managed superannuation funds (SMSFs) with pre-existing interests in unit trusts. The concern is that these arrangements (involving previously inactive SMSFs) may not satisfy the requirement that the pre 1999 SMSF has to be continuously maintained to provide retirement benefits to members both before and after its sale.

In a media release issued on the same day, the ATO warned people to be cautious of arrangements being promoted that involve the sale of an inactive pre 1999 self-managed super fund (SMSF) with a related unit trust.